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2009. 11. 96th
+ 20% of Korean companies have experienced a patent dispute

20% of Korean companies have experienced a patent dispute


      More serious patent disputes are expected in the new field of emerging technology


One out of 5 Korean companies has been involved in patent disputes for the recent 3 years, a survey found.


 


According to the report on “Status of damage from a patent dispute and countermeasure” published by the Korea Chamber of Commerce and Industry on November 16, 22.8% of the companies surveyed have experienced patent disputes in recent three years or are now under the dispute. (Table 1)


 


Patent dispute experience (%)


 




























Type


pending


Dispute in 3 years


N/A


Total


All


6.4


16.2


77.4


100.0


Large corporation


11.6


19.6


68.8


100.0


Small corporation


4.4


14.9


80.7


100.0


 


Only 26.5% of the companies have gained profit from the dispute directly or indirectly, and 58.9% of the companies suffered damage by the dispute. Especially among them, 33.2% of the companies got damaged despite the fact that they won the patent dispute.


 


The disputes have more happened between Korean companies (69.9%) than between Korean companies and foreign ones (39.8%).  In the case of a Korean company as a counterparty, competing companies accounted for most of the dispute (94.3%), and in the case of a foreign company, US companies topped the list (64.4%) followed by Europe (35.6%) and Japan (26.7%).


 


The dispute fields are mostly the technologies which apply to the core products of the companies involved (58.8%), which means great damages can be expected depending on the result of the disputes.


 


Future outlooks are not bright with many companies (74.2%) expecting serious disputes in the emerging technologies such as environmentally friendly technologies and bio technologies.


 


“Foreign patent companies such as patent troll who seek to gain profits from IP disputes are more actively doing business in Korea, so it is necessary to establish countermeasures through the analysis of the related technologies and the patent information, and professional diagnosis so that the dispute can be preliminarily prevented.”, the Chamber official said.